Indonesia's Nickel Exports to China Highest in Mid-2023

The Central Statistics Agency (BPS) has compiled data on Indonesia's nickel exports from January to May 2023.

China was the largest importer during this period, receiving 394 million kilograms (kg) of nickel. This net weight significantly increased year-on-year (YoY) compared to May 2022, when exports totaled 152.96 million kg.

BPS recorded the value of exports to China at US$2.09 billion in May 2023. This FOB value increased from US$1.19 billion (YoY).

Japan followed China, with considerably less volume at 39.05 million kg of nickel in May 2023. This figure also rose from the previous export volume of 28.47 million kg (YoY).

Norway also emerged as a significant destination for nickel shipments in May 2023, receiving 24.24 million kg. However, Norway was not recorded as a recipient of nickel from Indonesia the previous year.

South Korea received 555,000 kg, a significant drop from the previous year's 19.36 million kg (YoY).

Malaysia also experienced a significant decline in nickel imports from Indonesia, receiving only 92,660 kg in May 2023, compared to 10.53 million kg the previous year.

In total, Indonesia's nickel exports reached 458.36 million kg in May 2023, up from 211.52 million kg (YoY).

Previously, senior INDEF economist Faisal Basri stated that China is reaping significant benefits from Indonesia's nickel downstreaming policy, claiming that China receives 90% of the total profit, while Indonesia only receives 10%.

"Downstreaming, from nickel ore to nickel pig iron (NPI) to ferronickel, results in 99% of exports going to China. Indonesia's downstreaming clearly supports industrialization in China. From this downstreaming, we only get 10%, 90% goes to China," said Faisal Basri, as quoted by CNN Indonesia on Tuesday (8/8/2023).

Responding to Faisal Basri, the Acting Head of Maritime Resources at the Coordinating Ministry for Maritime Affairs and Investment, Firman Hidayat, explained that before the downstreaming policy, Indonesia frequently exported nickel in the form of ore.

"Regarding the 99% export to China, even before, nickel ore was also exported to China. When we exported nickel ore, we were literally exporting soil, with the nickel content being less than 2 percent. We were literally exporting our soil all this time," said Firman.

(See also: Nickel: Downstreaming, Potential, and Increasing Poverty in Mining Regions 2023)